I need some advices/suggestions from you. Currently I already maxed out this years contribution with index fund on Roth IRA. However, idk if I should keep investing on individual brokerage account? If so, should I invest in stocks or index fund still or something else? I know everyone is different on their holding but I’m just trying to get an idea of how you invest.
Should I keep investing after maxing out Roth IRA?
byu/Flaky_Neck1014 inpersonalfinance
Posted by Flaky_Neck1014
4 Comments
Sounds like you are asking about a framework for what to do with money.
Start with reviewing the Prime Directive in the PF Wiki. It will answer your question and many other questions you didn’t realize you should be asking.
* https://www.reddit.com//r/personalfinance/wiki/commontopics
You’d want to target around 15% or more of your income specifically for retirement. If you make ~$50k, then the $7500 in the IRA is about 15%.
How about a 401k? If you have access to one through work, they may offer a match — you probably don’t want to leave that free money on the table.
If you don’t plan on working until 65+, then you’d probably want to be looking at additional retirement funds so that you have enough to retire at the point that you want to retire.
If you want to eventually buy a house/condo, but you suspect that is a long ways out (>5 years), then you might invest extra for that.
First of all, do you have an emergency fund setup in a HYSA? That comes before investing.
Do you have a 401k at work?
Then we can talk Roth IRA.
You want to invest in a total market index fund like VTI. Or VT.
If you don’t have a 401k, and max the IRA, then yes… next up is a brokerage account. Invest in the same total market fund.
The general rule of thumb:
401k up to match %
Max HSA
Max Roth IRA
Max 401k
Brokerage